Hanley Economic Building Society has launched a new home renovation mortgage, replacing its previous light refurbishment mortgage.
The product is designed to support borrowers making improvements to their home – such as updating kitchens, bathrooms or carrying out general cosmetic alterations – rather than undertaking full-scale construction projects.
The mortgage offers an initial variable discounted pay rate of 5.64% for two years, representing a 2.85% discount off the Society’s standard variable rate (currently 8.49%). Available up to 80% LTV for both purchase and remortgage purposes, the mortgage is interest-only for the initial two-year term before reverting to a capital and interest repayment structure.
Loans are available from £30,000 up to a maximum of £750,000 at 80% LTV, £1,000,000 at 70% LTV, £1,500,000 at 65% LTV, and £2,000,000 at 50% LTV. The product comes with a £299 application fee and a £999 arrangement fee, and there is no early repayment charge. The mortgage also includes buildout indemnity cover, which is paid for by the Society.
Each case will be assessed on an individual basis by the in-house underwriting team, meaning no credit scoring, and this product is available on properties across England, Wales and Scotland (Scottish Islands by referral).
David Lownds, head of products and marketing at Hanley Economic Building Society, commented: “We’ve introduced the home renovation mortgage to better reflect the needs of the modern borrower. With more people choosing to renovate and enhance their homes, this product provides a flexible and cost-effective way to finance these improvements.
“This has been designed with simplicity and accessibility in mind, helping borrowers to achieve their design and lifestyle goals while still benefiting from our manual approach to underwriting and the personalised service we pride ourselves on.”
